From the mining sector, what is in the news these days are incidents of artisanal miners scrabbling for space at makeshift mining sites, with occasional fights and accidents that occasion deaths.
Foreigners have been reported seeking informal participation in artisanal mining value chains. Also, a surprise announcement that the Medium Term Plan will include a major steel project by State agencies, presumably anchored on local iron ore resources.
All the above point to a sector in need of an orderly development strategy. Already Kenya has institutional, regulatory, and legal frameworks, but what is missing are details of the latest mineral resources survey indicating what minerals are located where in Kenya and estimated quantities. It is understood that the survey is already done. This information is necessary to inform investments and licensing while entrenching sector transparency, and public/stakeholder awareness.
Publication of mineral resources should be followed by high-impact mining conventions to showcase Kenya’s mineral potential and investment opportunities for local and international investors, with promotion efforts additionally undertaken by Kenya’s embassies.
The potential economic impacts of the mining sector have for many years been underestimated. With a potential GDP contribution of about 10 percent, mining is currently at about 1.0 percent of GDP. It is a production sector that can significantly enhance national wealth and a strong balance of payments. Mining easily links with the manufacturing sector thus compounding national economic contribution. It supports rural economies in terms of jobs, SMEs and royalties shared by counties and local communities.
Globally, mining is assuming prominence, especially for those minerals that are required in renewable energy technologies for the manufacture of solar panels, EV batteries, energy storage, and electrolysers for hydrogen production. Very soon this category of critical energy minerals will be attracting green investment funding due to their energy transition roles.
There is also a high demand for rare earth minerals mostly used in ever-expanding ICT technologies. Mining is a sector that can justifiably qualify for multilateral and bilateral funding, especially for capacity development.
Specifically, artisanal miners will need to be organised in accountable entities to ensure proper operating practices and adequate resource accountability. Above all, Kenya should avoid situations reminiscent of happenings in Eastern DRC where the capture of the mining sector by foreign interests and local cartels has brought about a breakdown of law and order.
Mining Cabinet Secretary Salim Mvurya has certainly been visible in the re-launch of the mining sector, but more needs to be done to make up for opportunities lost in the last five years of limited sector progress.
